Liveblog From Apple iPhone OS Event in Cupertino

What do you do when you’ve just stepped out on a limb and released a new class of computer that you’re calling both magical and amazing but that runs on software designed over three years ago for entirely different hardware?

If you are Apple (AAPL), you sound the trumpets and assemble the techie press at your Cupertino HQ as soon as possible to preview the new operating system you hope will bring even more powerful magic to your latest creation.

As soon as possible was this morning, and AllThingsD‘s Drake Martinet was there to liveblog the event, which announced, among other things, iPad sales of more than 450,000, a new app-based mobile advertising platform, and long-awaited multitasking functionality for the iPhone operating system. The liveblog is below.

9:11 am: We’ve arrived at Apple’s Town Hall at Cupertino HQ. The electricity John Paczkowski described in his liveblog from the iPad event is missing today.

9:57 am: Just walked in. Room is pretty full. Empty stage, with the standard Apple setup: Apple logo backdrop for the slideshow. Music a la an iPod commercial playing in the auditorium.

10:00 am: Voice on the loudspeakers: “Please turn your electronic devices to silent, we are about to begin.”

10:03 am: Steve Jobs takes the stage and gets down to it. “The next generation of the most advanced mobile operating system in the world.”

10:04 am: Jobs opens with a quote from Walt Mossberg’s review. Says he will get to OS 4, but first, shares some iPad numbers. As of today, he says, Apple has sold 450,000 iPads, 300,000 on the first day. Over 600,000 iBooks downloaded as of today. And I Pad apps? Jobs says that 3.5 million have been downloaded so far.

10:06 am: Jobs says, “When you create something, you really have butterflies when you create things and put them out into the world. We are feeling really good about this.”

He then moves on to the App Store. Users have downloaded 4.5 billion apps as of today. Jobs is now showcasing some screenshots of apps.

There are obvious concerns about what multitasking will do to battery life, though Jobs emphasized that Apple has figured out a way to offer multitasking without using too much more battery.

Job’s didn’t get into specifics on how.

Forstall emphasized that implementing the new features was easy for developers, saying things like, “they added this [feature] in a single afternoon.”

11:09 am: Now Jobs, Forstall and Phil Schiller take the stage for a Q&A.

There’s a question about multitasking using more AT&T (T) data. Jobs says that it won’t be a big deal, adding that multitasking doesn’t up the amount of use.

He emphasizes that video is the big data draw, and you don’t use more than one video at a time.

11:11 am: Question about whether there will be an approval process for iAds as there is for the App Store?

Jobs pauses, “I’m not sure its going to be any more than a light touch.”

11:13 am: Question about development of iAds.
Job: “No development environment for iAds, just HTML5.”

11:14 am: Jobs says, “So far the ads haven’t been rich enough to warrant a world class ad agency. For the first time, they can bring their storytelling skills. I think this can be a whole new avenue for the advertising industry, because for the first time you can take advantage of the skills of an add agency in the digital world.”

11:18 am: Of OS 4’s way to switch apps, called “fast-app switching,” Jobs says, “Our competitors are tripping all over themselves to copy it.”

11:20 am: Jobs on iAd: “iPhone customers are among the most desirable demographics in all of advertising.

Schiller gets a word in edgewise: “On the phone, you have apps that help you do things. That becomes the customer’s way into information. Ads attached to those are potentially more interesting than ads just attached to search. “

Jobs: “This is the first time in history that this has ever existed. We have all these apps and a friction-free way to deliver them right to the phone. This has never existed before on PCs, still doesn’t.”

Jobs: “We tried to buy a company named AdMob, but Google came in and snatched them from us. So we bought Quattro, and they are teaching us we are making ads that are different than anything I’ve ever seen.”

11:24 am: Jobs: “This is not a get-rich-quick scheme for Apple. This is to help our developers survive.”

11:29 am: Question about running unsigned apps. Jobs shuts it down saying that there is a porn app store for Android, and Apple doesn’t want to go there.

11:30 am: Jobs brings up Walt Mossberg again, saying how impressed he is with how fast people are “getting it” with the iPad.

Schiller reiterates that the speed of adoption of the iPad, especially with the developers, has been incredible.

11:32 am: Jobs, continuing on the iPad: “If our competitors ever release a device like the iPad, they will be hoping for 3,500 apps in a year. We have that in the first week.”

11:34 am: Jobs, on the App Store: “I’m now seeing an infrastructure being developed through other mediums (blogs, etc.) that help with app discoverability.” This is in response to a question about the app store getting crowded and dense.

11:36 am: This question comes up: “How do you close an app?”

11:39 am: Jobs: “on the iPad, if you saw a stylus, they blew it. On this, if you see a task manager, they blew it.”

He doesn’t really answer, saying you never really have to close an app. Doesn’t elaborate.

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